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If you throw all the products we buy and the services we use in one basket, then add up the price tag, that's the Gross Domestic Product, which is the primary metric economists use to assess the economic health of a country or region.
The easy part of calculating GDP is the calculation itself: C+I+G+(X-M)=GDP. Got it? No? Well, add Consumption, Investment by companies, Government purchases, and then take the product of eXports (calling it 'E' would lack sexiness) minus iMports ('I' was taken). Viola! GDP.
Still don't get it? Well, knowing the components helps. Consumption is the biggest component, and it's a tally of the cost of all the goods and services we buy. Investment is what companies spend on the real assets they own, plus the value of the inventory that we haven't gobbled up through consumption. Government purchases are what the Feds pay money for (whether it be highways or fighter jets, though big social programs, like welfare, aren't counted). And then we calculate the difference between the goods and services we¿re sending to other countries and the stuff we're bringing in.
Good. That explains it, except there's a catch. Inflation has a habit of distorting the numbers, so economists talk about either Nominal GDP or Real GDP. In fact, Real GDP isn't necessarily "real" for most folks, since it takes any inflation out. Nominal GDP includes the effects of inflation. (There's something called the implicit price deflator which is a calculation using the two, but we'll spare you the details.)
So, now that we know GDP, why do we want to? Well, it's good to compare different markets. And watching the trend shows whether a given economy is growing (good), stagnating (not so good), or shrinking (very not so good). When GDP goes down two quarters in a row, we're officially in a recession.
For the record, GDP is released at the end of each month, with most reporting ¿preliminary¿ data for the previous month. But you won't get final GDP numbers for the fourth quarter of a year until the very end of the first quarter of the next year. After all, it's not an easy number to calculate.
Home / Markets / Industries / Media
Tuesday, April 29, 2008
Publicis Groupe : Q1 2008 Revenue
Comtex
PARIS, April 29, 2008 /PRNewswire-FirstCall via COMTEX News Network/ ----
- Revenue: EUR 1,061 Million - Growth at Constant Exchange Rates*: +8.2% - Organic Growth: +5.4% - New Business: USD 1.9 Billion (Publicis Groupe ranked No. 1 by Lehman Brothers) * 2007 at the 2008 exchange rates
"Publicis Groupe had a healthy first quarter with sector-wide top ranking for New Business (USD 1.9 billion) and solid growth that was more in line with our usual standards.
Our Healthcare communications business, still adversely impacted by the difficulties of the sector, should be back to positive growth before the end of the year. It should be pointed out that, excluding Healthcare communications, our growth has been 7.5%.
The strategy deployed in recent years and the investments to bolster our digital activities and expand business in the emerging countries are producing very positive results that should continue and even improve over the next two to three years. Our margins and financial indicators in the first quarter were in line with our plans. "
Maurice Levy, Chairman and CEO of Publicis Groupe
I. Revenue Growth
The Groupe's consolidated revenue for Q1 2008 amounted to EUR 1,061 million, up 8.2% on Q1 2007 at constant exchange rates.
The impact of currency translation was EUR 79 million, of which 77% was due to the weakening of the dollar over the period (-12.6%).
For the purposes of comparison with our main US competitors, Publicis Groupe figures have been recalculated in USD. Revenue thus totaled USD 1,590 million, i.e. a 14.6% increase, of which an 8.2% increase for North America.
Revenue in Q1 2008 included EUR 27 million of revenue from acquisitions.
II. Q1 2008 Business Review
The strong growth achieved in the first quarter can be attributed to virtually all the Groupe's activities with the exception of Healthcare communications, which continued to suffer from industry difficulties.
As expected, the strongest growth rates were achieved by digital businesses (over 20%), followed by media activities which are still posting double-digit growth. It should be noted that organic growth was strong in all businesses, excluding healthcare, in North America.
Q1 Revenue by Geographic Region (EUR million) Revenue Growth Q1 2008 Q1 2007 Excl. exchange Organic rate impact Europe 403 389 +6.1% +3.2% North America 466 492 +8.8% +5.3% Asia-Pacific 116 108 +12.7% +11.9% Latin America 52 47 + 6.3% +6.3% Africa and Middle 24 23 +14.3% +14.3% East Total 1,061 1,059 +8.2% +5.4% - Europe: A marked pick-up in growth in France, the UK, and Germany should be noted. - North America: The region's strong growth was driven by the digital and media businesses. - Asia-Pacific: Performed very well with particularly high growth in Greater China, India, and Korea. - Latin America: Argentina and Venezuela achieved excellent growth. - The Middle East and Africa: Continued to record strong growth.
Organic growth in the CRI countries (China, Russia, and India) averaged 21.4%.
Since the Groupe's strategy is to reinforce its digital business and its presence in emerging markets, it is important to note that digital accounts for 18.4% of revenue in Q1 2008 compared to 12.8% in Q1 2007 and that emerging markets increased from 19.5% in Q1 2007 to 21.6% of our revenue in Q1 2008.
III. First Quarter 2008 Highlights
- External Growth and Strategic Developments:
External growth continued as follows:
- In January, acquisition of Act Now, the San Francisco-based pioneer in sustainable development consulting. Act Now joined the Saatchi & Saatchi network and became Saatchi & Saatchi "S" ("S" for sustainability).
- In February, Publicis Groupe announced the acquisition of La Vie est Belle, the advertising, events, public relations and on-line communications agency. La Vie est Belle was then merged with Paname and the new entity was named Publicis Full Player.
- Finally, the Groupe completed the acquisitions of Italian media agency Muraglia, Calzolari & Associati and Indian public relations agency Hanmer & Partners.
Solutions | Digitas was launched in line with the Groupe's growth strategy and emphasis on developing the digital business while expanding into emerging markets. Digitas was already present in China, and has expanded into India and Singapore in conjunction with Solutions, an entity acquired two years ago by Publicis Groupe.
In January, Publicis Groupe announced its collaboration with Google. This partnership is a turning point demonstrating the Groupe's vision of open systems that foster various forms of cooperation with leaders in the fields of interactive media and search engines.
- New Business: Net Accounts Won Total USD 1.9 billion
The first quarter was particularly rich in terms of new accounts won, notably including Yoplait (Publicis Conseil), BT (Starcom Mediavest and Publicis), L'Oreal (ZenithOptimedia), Lunesta (Kaplan), Miller (Saatchi & Saatchi), Delta (Digitas), AXA (Publicis Conseil), Cadbury, Bank Of America, Emirates (Starcom Mediavest).
These achievements ensured Publicis Groupe the No. 1 ranking for New Business for the first three months of the year (Lehman Brothers scorecards, April 11).
- Marcel Bleustein-Blanchet Inducted into the Advertising Hall of Fame
The American Advertising Federation inducted Publicis Groupe's founder Marcel Bleustein-Blanchet, into the American Hall of Fame, the first ever non-American, thus acknowledging the Groupe's contribution to advertising in America and worldwide.
IV. Outlook
Despite the difficult context still affecting the economic situation, Publicis Groupe expects good growth this year driven by the digital and media businesses, emerging economies, and very positive New Business.
Forthcoming AGM: June 3, 2008 at 10 a.m. (Publiciscinemas) Publicis Groupe Digital Day: June 25, 2008 (Paris)
Publicis Groupe is the world's fourth largest communications group. In addition, it is ranked as the world's second largest media counsel and buying group, and is a global leader in digital and healthcare communications. With activities spanning 104 countries on five continents, the Groupe employs approximately 44,000 professionals.
The Groupe offers local and international clients a complete range of communication services, through three autonomous global advertising networks, Leo Burnett, Publicis, Saatchi & Saatchi and two multi-hub networks, Fallon and 49%-owned Bartle Bogle Hegarty; to media consultancy and buying, through two worldwide networks, Starcom MediaVest Group and ZenithOptimedia; interactive and digital marketing led by Digitas; Specialized Agencies and Marketing Services offering healthcare communications, corporate and financial communications, sustainability communications, shopper marketing, public relations, CRM and direct marketing, event and sports marketing, and multicultural communications.
Web Site: http://www.publicisgroupe.com Appendix New Business in Q1 2008 USD 1.9 billion (net) Key New Business Wins Leo Burnett:
AAPT (Australia), Aviva Insurance (Taiwan), Carrefour Telecom (Taiwan), China Mobile (Greater China), Confitecol (Latin America), GMR Sports Pvt Ltd (India), Heineken (Hong-Kong), ING Insurance (Malaysia), Jumeirah (Dubai), Mayfair (Morocco), McDonald's (UK), Midea (Greater China), SAMS Club (Brazil), Vanke (China), Veinsa - Mitsubishi (Latin America)
Publicis:
AXA (France), Citi (Italy), Citibank (Brazil), Fagor (Spain), LG Electronics (Italy), Manpower (France), Nestle (Mexico), Slendertone (UK), PMU (France), Yoplait (France)
Saatchi & Saatchi:
Guinness (UK), Miller (USA), Senior's Money (Canada), MengNiu (China), Volvo (Germany), Wal-Mart (USA)
Starcom MediaVest Group:
Avon Cosmetics (Colombia), Bank of America (USA), Bauer (UK), Cadbury (France), Coca-Cola (Asia-Pacific), Emirates (UK), Samsung (Enero'08) (Argentina), Samsung (UAE)
ZenithOptimedia:
AMVIX (Greece), Aston Martin (UK), Barclay's (Spain), Berker Mama (Turkey), Bratz (Spain), Chicco (Spain), Control (Spain), Dopod (Greater China); FHB (Hungary), Galata Town (Turkey), Godfrey's (Australia), Goldas (Turkey), James Boags (Australia), Kervan (Turkey), Kilim (Turkey), Lievitalia (Italy), L'Oreal - Media Buying (France), Mega Brands (UK), O2 Digital (UK), Opfermann (Germany), PGA (Greece), Poltronesofa (Italy), Schering Plough (UK), Warner Music Group (UK), WWF (UK)
Publicis Healthcare Communications Group (PHCG):
GTx / Acadopene - Medicus (USA), Solvay/Zolip (USA), Sanofi-Aventis/Multag - Saatchi & Saatchi Consumer Health and Wellness (USA), UCB/brivaracetam - Medicus (USA),Auxilium/Testim - Medicus (USA).
Public Relations and Corporate Communications (PRCC):
AXA (Netherlands), Bouygues (France), Bureau Veritas (France), EBSCO (USA), EU-China (Europe / Greater China), Groupama (France), Jardiland (France), Ministere de l'Economie et du Travail (France), Morgan (France), Saison Culturelle (France).
Digitas: Delta (Global), Marks & Spencer (UK), Samsung (Global). Kaplan Thaler Group (United States): Lunesta (USA), Aflac (USA). Q1 2008 Press Releases:
10/01/08 Marcel Bleustein Blanchet - First Frenchman inducted into the American Advertising Hall of Fame
18/01/08 Maurice Levy honored by the American Anti-Defamation League's 2008 Award
22/01/08 Collaboration between Google and Publicis Groupe 31/01/08 Acquisition of Act Now in the USA 07/02/08 Publicis Groupe acquires La Vie est Belle 14/02/08 Publicis Groupe annual results 2007 13/03/08 Buy-back and cancellation of 8 million shares 26/03/08 Digitas launches Solutions | Digitas in India and Singapore For further information: http://www.publicisgroupe.com
SOURCE Publicis Groupe
Copyright (C) 2008 PR Newswire. All rights reserved
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